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SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 Development Plan And Whitepaper 2021.10 1 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 Table of Contents 1. Disclaimer 4 2. SeaChain’s vision 6 3. Key features of SeaChain as a BSC token 6 3.1 Commitment to reducing oceanic plastic accumulation via funding relevant organizations 6 3.2 Fully decentralized, community-led decision making 7 3.3 Tokenomics 8 3.3.1 Hold to earn 8 3.3.2 Auto-swap mechanism 8 3.3.3 Minted LP tokens 8 4. Utility 8 4.1 Online store 8 4.2 DeFi games 9 4.3 SeaChain finance digital account 9 4.4 SeaChain’s blockchain 9 5. SeaChain’s blockchain 9 5.1 The Blockchain Sustainability Problem 9 5.2 Generalization of the blockchain for multiple supply chain management applications 9 6. Core team 11 7. Roadmap 12 8. Token distribution 13 9. Business operations flowchart 14 10. Sea Champions 14 10.1 Overview of rewards for Sea Champions players 14 10.2 Game Basics 14 10.2.1 Card parameters 15 10.2.2 Environmental attributes 15 10.2.3 Dueling 15 10.2.4 In-game currencies 16 10.2.5 Acquiring champions 16 10.2.6 Booster resource allocation 17 10.2.7 Marketplace 17 10.2.8 Card rental 17 10.2.9 Card salvage 18 2 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 10.2.10 Game tokenomics 18 10.2.11 Tournaments 19 10.2.12 Championships 20 10.2.13 Rewards for ranking 20 10.2.14 Card Staking 21 10.2.15 Card rental fees 21 3 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 1. Disclaimer This document is a technical white paper that presents the current status and future plans for SeaChain. The sole purpose of this document is to provide information, and it does not promise to provide a precise description of future plans. Unless explicitly stated otherwise, the products and innovative technologies detailed in this document are still under development and are yet to be incorporated. SeaChain does not provide a statement of quality assurance or affidavit for the successful development or execution of any of such technologies, innovations, or activities described in this document. Also, within legally permitted scope, SeaChain rejects any liability for quality assurance that is implied by technology or any other methods. No one possesses the right to trust any contents of this document or subsequent inference, and the same applies to any of mutual interactions between SeaChain’s technological interactions that are outlined in this document. Notwithstanding any mistake, default, or negligence, SeaChain does not have legal liability on losses or damages that occur because of errors, negligence, or other acts of an individual or groups in relation to this document. Although information included in this publication has been gathered from data sources deemed to be trusted and reliable by SeaChain, SeaChain does not write any statement of quality assurance, confirmation, or affidavit regarding the accuracy, completeness, and appropriateness of such information. You may not rely on such information, grant rights, or provide solutions to yourself, your employee, creditor, mortgagee, other shareholder, or any other person. Views presented herein indicate current evaluation by the writer of this document and are not necessarily representative of the view of SeaChain. SeaChain does not have the obligation to amend, modify, and renew this document, and is not obliged to make notice to its subscribers and recipients if any views, predictions, forecasts, or assumptions in this document change, or any errors arise in the future. SeaChain, its officers, employees, contractors, and representatives do not have any responsibility or liability to any person or recipient (whether by reason of negligence, negligent misstatement, or otherwise) arising from any statement, opinion, or information, either expressed or implied, arising out of, contained in, derived from, or omitted from this document. Neither SeaChain nor its advisors have independently verified any of the information, including the forecasts, prospects and projections contained in this document. Each recipient is to rely solely on their own knowledge, investigation, judgment, and assessment of the matters that are the subject of this report and any information made available in connection with any further investigations and to satisfy him/herself as to the accuracy and completeness of such matters. While every effort has been made to ensure that statements of facts made in this paper are accurate, and that all estimates, projections, forecasts, prospects, and expression of opinions and other subjective judgments contained in this document are based on the projection that they are reasonable at the time of writing, this document must not be construed as a representation that the matters referred to therein will occur. Any plans, projections, or forecasts mentioned in this document may not be achieved due to multiple risk factors including limitation defects in technology developments, initiatives or enforcement of legal regulations, market volatility, sector volatility, corporate actions, or the unavailability of complete and accurate information. SeaChain may provide hyperlinks to websites of entities mentioned in this paper, but the inclusion of a link does not imply that SeaChain endorses, recommends, or approves any material on the linked page or accessible from it. Such linked websites are accessed entirely at your own risk. SeaChain accepts no responsibility whatsoever for any such material, or for consequences of its use. This document is not directed to, nor intended for distribution to nor use by any person or entity who is a citizen or resident of or located in any state, country, or other jurisdiction where such distribution, publication, availability, or use would be contrary to law or regulation. This document is only available 4 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 on www.seachaintoken.com and may not be redistributed, reproduced, or passed on to any other person or published, in part or in whole, for any purpose, without the prior written consent of SeaChain. The manner of distributing this document may be restricted by law or regulation in certain countries. Persons into whose possession this document may come are required to inform themselves about and observe such restrictions. By accessing this document, a recipient hereof agrees to be bound by the foregoing limitations. This white paper is an information paper subject to update pending final regulatory review. This paper does not constitute an offer. Any such offer will be subject to final regulatory review and governed by a revised paper and conditions of sale document that will prevail in the event of any inconsistency with the paper set out below. Accordingly, any eventual decision to buy SeaChain tokens must only be made following receipt of the final paper, and tokens cannot be purchased until the final paper has been issued by SeaChain when all final regulatory requirements have been satisfied. This paper is not a prospectus, product disclosure statement, or other regulated offer document. It has not been endorsed by, or registered with, any governmental authority or regulator. The distribution and use of this paper, including any related advertisement or marketing material, and the eventual sale of tokens, may be restricted by law in certain jurisdictions and potential purchasers of tokens must inform themselves about those laws and observe any such restrictions. If you come into possession of this paper, you should seek advice on, and observe any such restrictions relevant to your jurisdiction, including without limitation the applicable restrictions set out in the Regulators’ Statements on Initial Coin Offerings at the website of the International Organization of Securities Commissions (“IOSCO”) (https://www.iosco. org/publications/?subsection=ico-statements). Restrictions are subject to rapid change. If you fail to comply with such restrictions, that failure may constitute a violation of applicable law. By accessing this paper, you agree to be bound by this requirement. 5 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 2. SeaChain’s vision Each year approximately 23 million metric tons of plastic waste enters rivers, lakes, and oceans, and this rate of accumulation could double by 2025 if no action is taken. Plastic can linger for decades to centuries; on current trends there will be more plastic than fish in the oceans by 2050. Plastic bottles, bags, and cartons can be deadly to animals that ingest or become trapped in them, and they eventually break down into microscopic plastic particles that pose an invisible threat to ecosystems and to human health via seafood consumption. Additionally, plastic leaches toxic chemicals into the environment when it is exposed to water, which inhibits the growth and photosynthesis of bacteria important for oxygen production (Sarker et al., 2020; https://doi.org/10.3389/fmars.2020.571929). SeaChain was designed to be the missing link connecting crypto investors, gamers, and environmentalists on behalf of the ocean. By combining tokenomics with the volume generated by DeFi NFT games we will develop a sustainable blockchain focused on solving real-world problems and continue funding river barriers that directly limit ocean plastic pollution. 3. Key features of SeaChain as a BSC token 3.1 Commitment to reducing oceanic plastic accumulation via funding relevant organizations The fundamental purpose of SeaChain is to combat the quickly worsening ecological crisis of oceanic plastic accumulation. A portion of the transaction fees charged for purchase and sale of SeaChain tokens will be used to fund charitable organizations that remove oceanic plastic or prevent its entry into the oceans. The precise mechanism for distribution of funds is described in Section 3.4. Donations to charitable organizations will be made with only the condition that SeaChain is acknowledged as a donor to assist in marketing efforts and network growth. A cost-benefit analysis by SeaChain’s founding team has identified Pangea Movement (https://pangeamovement.com/) as the first organization to receive funding from SeaChain, since their river barriers are the most cost- efficient method currently available for the prevention of ocean plastic accumulation. Each river barrier (costing around $4000 to $10,000) stops an average of 10 to 20 tons of trash from reaching the ocean per year (Figure 1) and Pangea work with local low-income communities to collect the plastic for recycling to provide income-earning opportunities for them while maintaining cost efficiency. Furthermore, Pangea Ocean Cleanup have agreed to cobrand their barriers with SeaChain’s logo. After SeaChain’s launch, the use of funds raised can be freely decided by the community via the governance system by raising proposals and voting upon them. Figure 1: One of Pangea Ocean Cleanup’s river barriers in Indonesia with trash accumulated after 1 to 2 days of operation. Local people take collected plastic to a recycling facility. Pangea Ocean Cleanup aim to install 16000 barriers spanning the world’s 1000 most polluted rivers (https://pangeaoceancleanup.com). 6 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 3.2 Fully decentralized, community-led decision making SeaChain is a fully decentralized, community-driven blockchain token that employs multilayered governance to grant holders direct influence over the project, new initiatives, key decisions, and ultimately its future. Through SeaChain Governance, holders can make proposals, vote on important decisions, elect members to the core team, and dictate the use of funds in the community wallet. 3.2.1 What is representative governance? The community can select or remove members of the core team at the end of defined terms through an election process. The first vote for core members of the team will take place 1 year after launch of the token to allow the original team time to create the project foundations. The first election will also allow the community to decide the duration of the next term for those who succeed in the elections. 3.2.2 Making proposals Under direct governance, proposals can be made at any time by Core Team and Community members who hold more than 100 million SeaChain tokens in a single BSC wallet. The SeaChain token will be the utility for governance that dictates voting power on the proposals and each individual SeaChain token counts as one vote. 3.2.3 Voting rules and required limits: Minor proposals For proposals relating to simple, short-term decisions such as marketing, a change in communication, spending of community wallet, the addition of new community moderators, or promotion strategies there is a minimum required quorum of 10 billion SeaChain votes for the proposal to be considered passed. 3.2.4 Voting rules and required limits: Major proposals For critical proposals that change key functions or aspects of SeaChain, such as replacing or removing a member of the core team during their elected term, amending the contract, or changing network, a supermajority of more than 50 billion votes towards one proposal option will be required for the results to be honored. This list of critical proposal categories can only be altered by voting. 3.2.5 Veto rights The core team has the right to veto any proposal; however, in the event a veto right is exercised, the SeaChain team must publish an explanation to the community within 7 days. The community may resubmit the proposal after 1 month if the reasons have been adequately taken into consideration. After the first use of a veto for a specific proposal, the Core team will not have the right to veto that same proposal again and it will be up to the community to decide if it passes. 3.2.6 Limitations on proposals Nonsensical or unrealistic proposals, including but not limited to insufficient financial capacity, any idea or activity, action that could cause legal risk, or liability for SeaChain will not be honored regardless of the outcome in the governance. Due to current technical limitations, initially tokens staked in pools, allocated for liquidity farming, or held in a CEX will not contribute to voting power as they cannot be verified through the governance system. As such, to participate in voting the holder must hold their SeaChain tokens in a private wallet. 7 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 3.3 Tokenomics Initially, every transfer of SeaChain incurs a 10% “transaction tax” that is broken down into 4 parts: 5% is awarded to all holders, 1% is added to liquidity, and the remaining 4% is swapped to BNB. 3.3.1 Hold to earn Five percent of every transfer of SeaChain is distributed instantly to each SeaChain holder’s wallet. This is known as a “reflection fee” and is achieved through a mechanism originally developed by Reflect Finance, which has been popularized by other projects such as SafeMoon. 3.3.2 Auto-swap mechanism Four percent of every transaction will be automatically swapped to BNB, which will be used to meet the costs of SeaChain’s operations, marketing, blockchain development, and charitable funding. Being a community-based project, 25% of the BNB will go to a governance wallet, empowering SeaChain token holders to decide what utilities and features will be developed and where marketing funds are spent. 3.3.3 Minted LP tokens Minted LP tokens will be staked at our partner’s farm, and income generated from the farm will be used for marketing. 4. Utility In the long term, SeaChain aspires to be used as a digital currency, not just as an investment vehicle and store of value, but also as a medium of exchange. We believe the ultimate utility of a digital currency, just like fiat currencies, is for purchasing goods and services. As a result, multiple utility components are planned including 4 main milestones: An online store through which SeaChain and other cryptocurrency projects can sell merchandise (Section 4.1); a digital collectible trading card game (Section 4.2); a cryptocurrency credit card (Section 4.3); and a blockchain for supply chain management (Section 4.4). The former three components will be developed first, and afterwards blockchain development will be prioritized. 4.1 Online store The SeaChain store will sell clothing merchandise made using organic cotton and phthalate-free vegan inks. Initially, the store will accept payments in fiat, but when logistically practical it will also accept SeaChain and offer a discount for purchases with SeaChain. Once the SeaChain store is operational, we aim to partner with other cryptocurrency tokens to offer merchandise to their community. We see three main benefits of this: First, profits from the store will be used for marketing the partner’s token. Second, the partner can offer products to their community and potentially gain holders from SeaChain’s community without spending on marketing. On the other hand, SeaChain will be introduced to the partner’s community and their holders might buy SeaChain to get a discount at the store. Finally, transactions at the store would contribute to SeaChain’s transaction volume and swap fee generation. 8 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 4.2 DeFi games Our first DeFi game will be Sea Champions, a trading card game featuring non-fungible token cards depicting marine wildlife that will only be obtainable using SeaChain tokens. The rarity of each card will correspond to the conservation status of the animal depicted; for example, extinct animals will be the rarest (and most powerful) cards, animals nearing extinction will be the next rarity tier, followed by critically endangered animals, and so forth. The goals will be to provide a fun experience and generate awareness about animals that face extinction if we fail to properly care for our oceans. For further details about Sea Champions, see Section 10. 4.3 SeaChain finance digital account In addition to our DeFi games, we will integrate a payment solution that helps the growth of our ecosystem in the form of a cryptocurrency credit card. When SeaChain is transferred to the digital account, the holder won't pay any transaction tax. Our payment system will also be compatible with selected third-party cryptocurrencies native or tokenized to the BEP20 format. These selected tokens may be sent to the digital account and transfers of tokens other than SeaChain will incur a 4% fee, which will be used to buy back SeaChain tokens and burn them. 4.4 SeaChain’s blockchain SeaChain aims to develop an independent blockchain once the project reaches critical mass. Given the cost and complexity of building a functional blockchain, project growth is needed to make this goal feasible. Achieving a market cap of $50 million to $100 million will provide enough user adoption and funds availability to develop a blockchain. 5. SeaChain’s blockchain 5.1 The Blockchain Sustainability Problem The environmental costs of major blockchains include a huge energy consumption, use of high end computer hardware, and creation of electronic waste products owing to shortened lifespan of computer components used for blockchain mining. The environmental detriments of high carbon footprint cryptocurrencies cannot be significantly ameliorated through renewable energy use, and it is difficult to perceive their impact as positive from a sustainability perspective. The solution that will be adopted by SeaChain is to build a blockchain from scratch focused on maintaining sustainability even as the scale of the network grows. 5.2 Generalization of the blockchain for multiple supply chain management applications This section describes a longer-term goal, and the precise details are subject to potential change as further planning and development work is conducted The use of blockchain technology for supply chain management can improve business efficiencies and prevent product counterfeiting. After the initial focus on the plastic economy, the third target for SeaChain’s blockchain development is to generalize their technology for multifaceted supply chain management applications. To compete with the few other blockchains involved in supply chain management, SeaChain will incorporate innovative technological features, including keeping the record of all past transaction data lightweight (below 1 megabyte) using advanced cryptographic proofs and recursive zk-SNARKS using the open-source Mina Protocol (https://minaprotocol.com/). 9 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 The majority of blockchains suffer from a problem of increasingly cumbersome data files as transactions accumulate on the chain over time (Figure 2), and SeaChain will be designed from the ground up to avoid this potentially limiting the network’s transaction speeds and requiring significant computational power in the future. The lightweight blockchain design will be combined with a Proof of Authority consensus mechanism in which trusted validators, who will not require high computing power owing to the small data file size, will provide network security by staking their reputation. Validators will receive transaction fees when the network is used and when selecting validators we will prioritize organizations that are involved in removing plastic from our oceans or otherwise protecting global ecosystems (though we will not authorize very small or new organizations who may not have sufficient reputation to stake as validators). Figure 2: The growth rate of the Bitcoin blockchain data file in megabytes from 2009 to 2018 (https://www.blockchain.com/en/charts/blocks-size?timespan=all). 10 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 6. Core team Estevao Bello AceVanAcker Tobias Fowler Founder & Head Of Contract Developer Head Of Marketing Operations Ahmed Saricicek Chris Ford Luiz Felipe Head Moderator Chief Copywriter Graphic Designer 11 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 7. Roadmap The roadmap for development of SeaChain is organized into 6 phases (Figure 3). Progression through these phases is expected to take several years and the details of this plan may be subject to change owing to technological, societal, and market environment shifts. Figure 3: SeaChain’s roadmap for long-term development. 12 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 8. Token distribution There will be a total supply of 1 trillion SeaChain tokens at launch. On Day 1, 40% of the tokens (400 billion) will be burned, resulting in a circulating supply of 600 billion tokens. Over the subsequent 12 months after launch, a further 100 billion tokens will be burned from a locked wallet with an automated time release function (8.33 billion tokens per month). The remaining 500 billion tokens will be allocated for holders (243 billion), initial liquidity (47 billion), the development team’s funds (50 billion), marketing (40 billion), team salaries (30 billion), liquidity for future exchange listings (25 billion), giveaways (25 billion), funding river barriers and development (15 billion), and a launch day airdrop (10 billion) , starting capital (15 billion) (see Figure 4). The wallets for marketing, team salaries, future exchange liquidity, giveaways, and river barriers will have 100% of their tokens locked at launch with an automated mechanism to release a proportion of the tokens each month over the first 1 year after launch. The development team operations wallet will be 100% locked for 1 year, with automated proportional releases every month for the subsequent 3 years. Figure 4: SeaChain’s token distribution (initial supply 1 trillion tokens). 13 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 9. Business operations flowchart 10. Sea Champions Sea Champions is a NFT game in which players can earn and spend SeaChain tokens. The Seventh SeaChain Tournament has been organized by the Coalition of Sea Creatures to elect a powerful and wise leader to command a Worldwide Ocean Cleanup. Teams of powerful ocean champions will be directed by the players, who must hone their decision-making and risk- assessment powers to achieve victory. Each player will command a team of 5 champion cards (NFT or non-NFT) and compete with another player by comparing card attributes in an exciting duel against other sea champions. 10.1 Overview of rewards for Sea Champions players • SeaPoints, a free currency earned through gameplay that can be traded for SeaChain at the marketplace • Player-vs-player rewards both at leaderboards and frequent championships • Rewards earned from staking high-level champions (NFTs) • Fees earned by renting champions to other players • Staking earned from holding SeaChain via tokenomics reflections 10.2 Game Basics Sea Champions is a trading card game focused on strategic decisions coupled with interesting characters represented on individual cards, each with a different set of abilities and other aspects that help the player make smart choices that will affect the game’s outcome. 14 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 10.2.1 Card parameters 1. Card name: Will display a name for the Champion, which will contain information about which creature the champion represents (eg, “John Fango, The Tactical Megalodon”). 2. Rarity: Common, Uncommon, Rare, Very Rare, or Legendary. 3. National identity: Initially USA, Brazil, UK, India, and Philippines, with more nationalities to be released in the future. The champion’s nationality will affect the location of the duel among the seven seas, and each location will have particular environmental attributes. 4. Subtype: Each champion will be assigned to one of seven subtypes based on different aspects of ocean ecosystems, each of which will provide unique abilities. 5. Level and ascension: Each card will have three levels and seven ascension levels. At level one the champion will not have access to any special ability, while level two will unlock their special ability and level three will enhance it. Very rare cards will always start at level two, while legendary cards will start at level three. After reaching level three, a card may progress to ascension levels. Each ascension level will increase the champion’s attributes randomly within the scope of the card’s genetics. Both level and ascension level can be improved by spending SeaPoints. There are three main “ABC” attributes that may be chosen in duels: • Agility: Affected by current, pollution, and pressure • Brawn: Affected by pressure and pollution • Cunning: Unaffected by environmental attributes As easy as 123 All three ABC attributes listed above will range from 1 to 999 and may be permanently increased by upgrading the champion’s ascension level using SeaPoints. ABC attributes may be increased or decreased temporarily beyond those limits by environmental bonuses or penalties involved in each individual duel. 10.2.2 Environmental attributes 1. Pressure: The battle takes place in the sea and the champions might prefer to battle near a coral reef, close to the surface, or in deep waters to gain an advantage over the opposing team. Pressure will range from 1 to 5 and may be increased and decreased by the player using the actions “submerge” and “emerge”. Some creatures are less affected by changes in pressure depending on their subtypes, and also, the player might find surprises if they submerge too deep. 2. Current: Currents will be randomly selected from a pool corresponding to the national identity of their commander and players will know the current before choosing their attributes. Each of the nations will have a preferred “sea”, in which champions will have a current that mostly benefits their status, usually being favored by that. 3. Pollution: As the sea champions rally their efforts to clean the oceans, humans continue polluting it, so, as the game progresses, the ocean gets increasingly more polluted. Players will be able to use the “clean” action to reduce pollution by one level and therefore reduce the effect it has on their champion’s attributes. 10.2.3 Dueling When dueling, both contenders will use a deck of five cards and will choose one of them to be their commander, which will also be the first active champion. The chosen commander will determine the 15 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 player’s national identity in the match, which will affect the starting ocean. The commander’s highest ability will give a small boost to all cards in the player’s hand, including the commander itself. The first player to win 3 matches will be declared the winner of the duel and will receive rewards accordingly. Game stages: Round -> Match -> Duel The two active champions will battle in rounds by comparing their chosen attribute, and the champion with the higher attribute wins the round. The first champion to win two rounds wins the match. After winning a match, the champion cannot be used again during the game’s duration. Each round has 4 stages: 1. Player action 2. Environmental effects 3. Choosing attributes 4. Comparing attributes Round stage 1: Player action During their turn, each player may choose from the following actions: • Clean the ocean: This action will reduce the pollution by one stage. • Emerge or submerge: This action will increase or decrease the pressure of the environment. • Activate an ability: The player may use their action to activate the unlocked abilities of their active champion, which are usually related to their subtype. • Replace the active champion: If no rounds have been played in a match, the player may use their action to swap their active champion with another one in their team; this ability may only be used once per duel. Round stage 2: Environmental effects After choosing an action, the pollution will be increased, the pressure will be altered by the emerge/submerge actions, and players will know which current will be in effect during this round. Round stage 3: Choosing attributes As the round progresses, the champions prepare to duel; the player must choose which attribute will be used by their active champion. That decision will be made after the player knows the final value for each attribute unless an ability says otherwise. Round stage 4: Comparing attributes After comparing attributes between the active champions on each team, the champion with the higher value wins the round, the winning champion scores a point, and a new round begins. 10.2.4 In-game currencies SeaChain tokens will be the main currency for purchases in the marketplace and purchases of booster packs. SeaPoints can be earned through playing missions, events, battles, and by card salvage, and they can be used to level up champions. Players can trade SeaPoints for SeaChain at the marketplace, SeaPoints will not be sold by SeaChain or Atlantis Studios, being only earnable via gameplay to ensure a pleasant free-to-play experience. 10.2.5 Acquiring champions New players can acquire five non-NFT starter champions for free by joining the game, comprising one uncommon and four common champions to be chosen from a pool of eight common and three 16 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 uncommon cards. Those non-NFT cards will not be tradeable or salvageable, although they may be leveled up to unlock their abilities and will get stronger with in-game progress. Players can acquire NFT champions by purchasing booster packs containing a random selection of cards from a particular expansion. Before the public release of Sea Champions, presale booster packs will be available with a card rarity distribution as follows: • Common: 77% • Uncommon: 15% • Rare: 5% • Very Rare: 2.5% • Legendary: 0.5% Every champion will have a 0.1% chance of being Elite, which will have a cosmetic effect and reduce its leveling cost by 50%. After the public release of Sea Champions, players will be able to buy up to one booster pack per week with SeaPoints and up to four per week with SeaChain. Each booster pack will contain three cards with a rarity distribution as follows: • Common: 88% • Uncommon: 8% • Rare: 3% • Very rare: 1% Booster packs that will be available include standard booster packs as well as event packs that may contain exclusive champions. As the game progresses and new event packs are released, previous event cards will be added to the standard booster pack card pool. 10.2.6 Booster resource allocation Booster resource allocation will work as follows: • 20% staking • 30% play to earn • 20% PVP • 20% Operations • 10% Marketing This allocation is based on the first booster pack presales and might change as the game progresses. 10.2.7 Marketplace All NFT Sea Champions, items, and SeaPoints will be tradeable at the marketplace. Selling prices will be defined exclusively by the players and every transaction will incur a 10% fee, which will be distributed back to the players as earnings from staking level 3 champions. The marketplace will have filters to help players choose a champion, including subtype, rarity, ocean, nationality, attributes, locked/unlocked ability, and staking availability (being level 3). 10.2.8 Card rental Players will be able to make their cards available for rental by other players in the marketplace at a price of their choice. When a player rents a card, they can use that card in the game and battle for 17 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 rewards, leaderboard position, and even participate in tournaments. Ten percent of earnings from the hired champion will be directed to the championship prize pool as a reward for competitive players. 10.2.9 Card salvage Players will be able to salvage their owned cards to gain SeaPoints, which can be used to level up their cards. Salvaging a leveled-up card will refund some but not all of the SeaPoints spent to level that card up. This ensures even low-rarity cards will be useful in the long run, as they can be converted into SeaPoints. Salvaged cards are sent to the burn wallet. 10.2.10 Game tokenomics Sea Champions will reward players for reaching high leaderboard rankings or staking valuable cards. Card staking rewards will be based on the card’s rarity, and PVP and PVE rewards will be drawn from a separate resource pool. The initial distribution to each pool is described below, although those values can be changed through the standard SeaChain governance voting process if significant disparities are found as the game matures. The 10% marketplace fee will be distributed as follows: • 4% Card staking • 4% SeaChain staking • 1% Operations • 1% Marketing The 10% card rental fee will be distributed as follows: • 4% PVP reward pool • 4% Staking reward pool • 1% Operations • 1% Play-to-earn pool The 10% queued tournament fee will be distributed as follows: • 8% PVP reward pool • 2% Play-to-earn pool PVP rewards • 20% of the booster sale • 4% rental fee • 8% tournament queue fee 18 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 10.2.11 Tournaments Players may create a tournament queue, selecting an entry fee paid in SeaChain. After 8 players join the tournament queue, they will then compete in a single-elimination tournament with rewards as follows: 19 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 10.2.12 Championships Regular championships will be held with a rewards structure as follows: • Weekly championships: 10% PVP rewards • Monthly championships: 36% PVP rewards • Yearly championships: 20% PVP rewards • Leaderboard rankings: 34% PVP rewards 10.2.13 Rewards for ranking Players will be rewarded for playing competitively, starting from the gold division, according to their leaderboard ranking. The leaderboard rewards will be sent in blocks so players will receive regular rewards as an incentive to maintain or improve their ranking. The rewards structure will be as follows: • Gold: Percentage of players 35% / leaderboard pool percentage 35% • Platinum: Percentage of players 20% / leaderboard pool percentage 25% • Diamond: Percentage of players 3% / leaderboard pool percentage 20% • Champion: Percentage of players 0.5% / leaderboard pool percentage 20% 20 SeaChain White Paper - A Blockchain Solution to Ocean Pollution Version 0.82, 14 Oct 2021 10.2.14 Card Staking Champion cards that achieve level three will generate passive income based on their rarity and ascension level. Total staking value composition: • 4% Marketplace • 4% Card renting fee • 20% Booster pack sale Amount earned by staking: Total staking pot × (Player influence points ÷ Total influence points) Influence points: Rarity coefficient + 10% per ascended level Staking division Rarity coefficient Common card 0.05 Uncommon card 0.3 Rare card 1 Very rare card 2.5 Legendary card 5 The player’s total influence points will determine the share of the staking pot they will receive. 10.2.15 Card rental fees Players may put their cards on the marketplace to be rented out for a li mited time for a fee determined by the player, and 10% of the rental fee will be allocated to the rewards pools. This fee will be charged at the end of every battle and tournament, based on the number of champions in the party that are not owned by the user. This system creates a non-NFT copy of the champion that can be used by the player, while the owner’s NFT card will be locked and cannot be sold or rented again for the duration of the agreed rental period. 21